Roshan D Souza - Feb 11, 2020

Meal Kits for bigger servings is still unexplored

By selling meal kits for much bigger servings, you are basically bringing the grocery store to the home. What is more convenient?

Meal Kits Bigger Servings

Every business seeks expansion, through maximization of its revenue-generating potential. The meal kit business started off well, and companies that incorporated meal kits got their fair share of profits, until the number of companies began to increase. Competition grew steadily, until it became non-profitable for many. A good number of companies like Chef’d, could not keep up with the challenges associated with meal kits, and were forced to drop out. The meal kit market had now become non-sustainable; or had it? QSRs like Chick-fil-A thought different, and it was a little startling when it announced commencement of meal kit sales, by the 27th of August, 2018. The business sector wondered why. They were making a daring act, by delving into a supposedly ‘crashing’ business. The answer was simple. They were going to break the general convention of production, branding and then advertisement, by selling their meal kits like the way they sold food; drive-through. They already had an existing customer base, who came in at their convenience to buy packaged food. This was the key to success for Chick-fil-A, and other QSRs did the same in no time. They had seen an unexplored means, by which the meal kit business could be made profitable again, and utilized it to their advantage. You might think: 

Okay, they have exploited the last surviving potential, and with the increasing number of QSRs already in the meal kit market, competition has risen and it has truly been utilized to its fullest.” 

Or has it? We dare to ask again. The answer is no. Want to know what we figured out? Read on.

The answer is simple; size

Chick-fil-A had to break convention, to pull out something special. Well, why don’t we break convention again? The average meal kit weighs in at about some several hundreds of grams, to a few kilograms. This is because meal kits by convention, are restricted to servings for one or two people. The potential of bigger meal kit servings, remains unexplored. Taking up the idea of selling bigger meal kits, would make companies stand out from the rest; a major key to success in any business. The targeted market would then shift to whole families, and groups of people. Organizers of small parties, or caterers would now be able to order meal kits for their small-scale events. With large meal kits, comes the possibility of containing a wide variety of ingredients, to meet the needs of individual persons in a group. As at the year 2018, there were an estimated 127.59 million families in the US. Of course, not all families would be willing to buy meal kits, as many people still prefer old school grocery shopping. But after all permutations have been made, it still leaves the available market in units of millions. 

A lot of convenience-seeking people who run families; usually the middle and upper class citizens, have possibly considered using meal kits to prepare meals for their families. However, the thought of buying multiple meal kits, and putting delivery costs into consideration, is discouraging. They then end up taking the drive, down to the grocery store. After all, they want to buy in bulk. Switching to large meal kits for families, exploits this latent desire in people who run homes. They are buying in bulk, and saving money in delivery costs. Their barbeque, Christmas and Thanksgiving parties, can now be taken care of using meal kits.

Nothing spells business success better than novelty. People are thrilled by the ‘new’. Meal kits for bigger servings, help create this effect. The success of Chick-Fil-A, is attributed to the convenience and novelty they provided. Home runners who use meal kits, are obviously seeking convenience. The more they get, the better. By selling meal kits for bigger servings, you are basically bringing the grocery store to the home. Only now, your customers are not spending time to scout for the ingredients. With just their mobile phones, they would be able to shop in bulk, and the need to go grocery shopping would be eliminated. What is more convenient? Also, restaurants that are looking towards the catering market, can use these meal kits to prepare food for small gatherings, that are not up to scale for a large catering service.

With human development, came evolution in human culture. The meal kit; even though only recently created, has made its impact on both consumers, and the food industry in general. It has shown us the benefits of creativity. When the business was thought to have been fully exploited, Chick-fil-A dared to say no.  For companies considering delving into the business, we say that there is still room for its expansion; meal kits for bigger servings. Companies are starting to produce meal kits for up to four people, but are hesitant to go bigger. This should be exploited. However, they should keep in mind that the only uncertainty, is the willingness of purchase in a particular area. For this, adequate market research should be conducted, to minimize the risk of loss.  

Written by Roshan D Souza